The Livewire blog creates the forum for Infosys, Communication Service Providers and Media and Entertainment Companies to discuss and share insights on the key industry challenges, opportunities, trends and solutions.

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January 18, 2012

European Communications Seminar -Improving the Customer Experience 18 Jan

Kantar Worldpanel in this morning session reinforced some key trends and data points in understanding the consumer and what do consumers they really want?  One in two consumers in the UK now own a Smartphone and all major countries Europe are seeing strong demand, with Apple and Blackberry leading the way.

However, more consideration is being placed on the supporting Operating System (OS), for 18% of consumers in the UK market the OS is a vital component of the decision making process. Interestingly Android is leading the way outstripping Apple and other OS platforms and the majority of customer switching is also funnelling towards Android's platform.

August 30, 2011

The future of TV is...there is no TV!

...there are just different screens.

Networks will be replaced by the Internet, and TV will just be another connected screen.

Video will just be a spade of the offerings, with gaming, social interactions, T-commerce, interactive adverts and convergence being at the forefront. That is when the likes of Apple, Microsoft and Google will compete with the cable guys - Time Warner, Comcast and Cablevision.

The importance of connected TVs to has already been stamped by Korean TV maker Samsung spending $70m on marketing its Internet TV apps in 2010. The magic has already started - with remotes controlling TV, and consumers able to play and watch content seamlessly across TV, PC and their smartphones and tablets. These emerging trends point to the increasing user demand to access content, services and entertainment from any location, any device, on the user's terms.

A growing numbers of television viewers are simultaneously online while watching television, most of them using a laptop or an Internet enabled smartphone. With the advent of social networks, this multitasking means that people are discussing the TV shows at the same time as they are watching them. These real-time conversations enable consumers to socially engage with TV programming even more. This holds enormous significance for service providers, as viewers can discuss shows via the TV set and influence each other's viewing. This interaction also enhances the whole lean-back-on-the-couch TV experience for viewers, as they can actively converse with each other, around any programming and content.

How social networks affect broadcasters:

Interaction with TV through social networking has enormous significance for broadcasters.Facebook 'Like's & comments and Twitter 'trending's influence TV ratings. The likes of Facebook and Twitter know in real-time how viewers are reacting to TV programmes. These social networks own valuable, detailed information about people's behavior, such as discussing TV shows and sharing links to videos. This futuristic vision of social viewing is one in which all major partners in the television industry ecosystem - IPTV, cable operators, satellite operators, middleware technology firms, device manufacturers, advertisers, broadcasters and studios - must build new relationships, negotiate new terms and resolve the next set of challenges in order to seize revenue opportunities.

Essentially, lifestyles are unfolding, and they are unfolding fast.

  • TVs are becoming much more than just entertainment devices and service providers must tap the trend to make the idiot box smart and intelligent
  • Consumers will readily inculcate apps to their TV viewing behavior after having experienced it on their mobiles
  • Service providers should not view app stores as new revenue channels but as retention tools that keep consumers engaged

So get ready to post your next status update, order a pizza, ask a Honda dealer to contact you, vote for your favorite character of that reality show and continue watching that favorite movie of yours on your mobile while you leave the couch to go out for a stroll in the park - all of these on your TV right there in the living room!

July 6, 2011

Smartphone subscriber trend

A recent article on Business Insider gives the trend on Smartphones' subscribers. The trends is very interesting and gives and interesting insight! 


As can be seen, the Android users market is blowing away all the competition. The trend is continuously up since May 2010. The share for RIM has been falling but is still significant at around 25%. Apple has been consistent with a slight uptick!

From the communication service provider perspective, a way to play out this trend would be to:

1. Spread the bets with multiple partnerships and concentrate on applications' utility. 
2. Understand the consumer behavior, analytic and trends better to suggest applications for use and download. 

The idea is to focus the consumer base in terms of what kind of smartphones they have and what kind of usage the consumers have. The correlation and mapping of these parameters will give insight into which applications and which OS to focus on and consequently for the right partnerships to derive maximum mutual benefits. 

From the system integrator point of view like us, we have to be adept at:

a. What our clients consumers want and 
b. Consult which OS will best suit for their customer base and co-create the applications with our clients. 

The investments in established Centers of Excellence will surely come in handy. 

June 8, 2011

Social Media and CSPs

 

In one of the community discussion forums at one of the prominent telecom focused sites, there was an interesting discussion on whether the telcos/CSPs have missed the Social Media bus? The discussion revolved around the fact that the growth of social media will be dependent on Communications, increasingly mobile and especially in the developing countries. 

 

Successful serial entrepreneur, Nick Ogden suggests that telcos may have 'missed the boat' when compared to banking and payment verticals which are tapping the mobile market. Apart from a few of scattered initiatives at national level there is yet to be seen an industry-wide offering that includes the leading financial institutions and the telecoms industry as a whole.

 

Ogden also suggested that brands like Visa and MasterCard as international brands are instantly recognizable but that the telecoms industry does not have a universal brand or identity that matches them in terms of instant recognition as a payment method. Any hope of success would rely on partnerships with the credit card processors and their issuing banks, especially where NFC (Near Field Communications) devices are concerned.

 

News that Google has joined forces with Citi and MasterCard to embed NFC capability into the Android powered Nexus S handset must be disturbing for mobile operators. So essentially, the role of mobile operators is limited to providing backbone for communications.

 

The second offshoot of the discussion was the point of need for partnership with CSPs and that many had been using social media as a marketing weapon to attract subscribers by offering social media access free.

 

It make me wonder if telcos have not 'missed the boat' in both scenarios. What the 'partnerships' both the points suggest remains to be seen. CSPs wishing to promote their services on social media as a customer of any social media site will certainly be welcomed, but Social media company being willing to share its revenues with network operators because they provide the communications is highly unlikely.

 

One example of convergence which can be seen in Indian market which to an extent addresses this problem is the recent launch of a popular social media application by a software company headquartered in Bangalore by tying up with one of biggest CSP in India. The application was not a smartphone application. The application uses the same technology as sending SMS and hence the status updates on the social media site happens using this technology. For using this application, the subscriber doesn't need a smartphone (please note the smartphone penetration in India is very less) and would be charged Rs X per day by the CSP. This is an excellent model of tying up with Social media companies and leveraging the viral nature of the medium for newer channels of revenues. This calls for deep collaboration with system integrators, CSPs and Social Media companies. 

June 2, 2011

Trend watching in India: Points to note for Service Providers

Was reading an article on the growth and fate of Indian Telecom sector. The article bring out some interesting insights and are worth noting. The points which come out are very important for service providers and partners like us. 

The article says, the Indian telecom sector now has over 820 million subscribers. The Indian population, according to Census 2011, is 1.2 billion. If we take ino account the poverty statistics from the official data, the 400 million balance population survives on less than $ 1 a day and net net we are saying everyone who can afford a cellphone already has one. So the question is are the glory days over? 

The article then goes on analyse a few of the Indian companies and how this entire game is turning out into a dog-eat-dog, a sign that the market is not big enough for all to prosper. 

In my opinion, the market is witnessing a paradigm shift and the battle is now to get that coveted subscriber who is spending more data and is on roaming now and then. So, is falling revenue per minute a bad sign? One may say yes. But I believe, in the long run, it might well be zero. Yes, the voice calls will be free and subscribers will be charged for value added services. 3G in India will drive the next growth phase. 

What it means for service providers is to come up with innovative means to capture this new shift. Applications: consumer and enterprise will decide the volume of subscribers. How does one take advantage of mobile advertising. In India the smartphone penetration is not high compared to west. How does one leverage technology to provide top of the art applications for people to connect? These are the indicative questions which the service providers will need to answer to grow! 

The article ends with a paraphrased quote from Churchill and I couldn't agree more:

This is not the end. Or the beginning of the end. It is only the end of the beginning

April 8, 2011

What is next? Tablets?

WebEx, remote desktop, MS-Office, overnight trip to client site, very usable on an airplane to do emails and review spreadsheets, and works even more beautifully in the meeting to make presentations, uses cloud storage for the documents you need; managing traffic disruption, reviewing bid slides and sending a tweet to the airline and getting an instant reply. Sometimes social media works magic, than trying to contact the call centre. And it is light on the bag too. Well, it is not the mini laptop we are talking about. It's the tablet, pioneered by the iPad. And if you think this is a concept scenario, it is not. This one is taken from a recent real life experience.

And in case any one doubts that tablets will become a truly enterprise device, check out the Gartner Top Predictions for IT organizations (http://www.gartner.com/it/page.jsp?id=1480514). "By 2013, 80 percent of businesses will support a workforce using tablets"

Setting up the device itself might be an obnoxious exercise - Procuring Micro Sims, setting up iTunes accounts, adding apps with a credit card and etc etc. Not an enterprise grade experience. Strikes me that we could do with a   managed fulfillment service.

But why tablets cannot replace laptops?

  • Lack of a real keyboard makes it challenging
  • Limited storage
  • Size of screen
  • Security and interoperability of enterprise applications

I could only think of the basic differences at this time. They are like sports convertibles - do it with style and panache, but it's not a car for every need.

Having said that, all the negatives can be turned around quite easily - just need a dose of creativity and innovation. Haven't we after all evolved from the X86 to the PC to laptops. They demanded a change of perception more than anything else, and change is something which always encounters resistance. Helps provoke the realization that we do not just buy devices - we need to adapt to new innovative ways of working, new apps, newer personal ways to engage with customers.


The most striking part of using a tablet in front of a customer is the relative intimacy. Highly open and personal, we are moving away from the clichéd 'across the table customer v/s vendor' to a more rich form of communication and at the same time oozing innovation. How much is the highly open, personal and innovative communication and relationship building during a RFP or a quarterly review worth to the organization? The price of the device? No. The price of investing in innovation customers can relate to? Yes.

 

Mobility is transforming the globe, the way businesses are being done. Who is going to catch the train early is yet to be seen, but the ones who do, will reap the benefits. Game changer, this one?

Growth of Digital Television - A Digital Equalizer!

More often than not the clichéd term "Digital Divide" is used to denote lack of inclusion of rural populace in the internet and mobile revolution sweeping India. However what has created the media buzz (or the lack of it) is the uptake of DTH services in India. Hold your breath - rural population is the major growth driver of DTH with rural areas registering over 50% growth rates.

In another interesting move, a major Korean white goods manufacturer has announced to launch a television with an inbuilt DTH decoder, targeted towards the rural market. The target group of the company is approx. 40 million TV households which do not have cable or satellite connection.

As per various analyst reports the number of TV households in India stands at 124 Mn - 130 Mn depending upon the report you like to go with. Out of these 124 Mn - 130 Mn households approx 30 Mn are digital; DTH or addressable cable and the rest are analogue. With 65% of Indian population still residing in rural areas, the opportunity for DTH to grow is huge.

Another factor that will fuel the growth of DTH and the digital cable TV in India is the MIB's (Ministry of Information and Broadcasting) consideration to sunset analogue cable distribution in India. The deadline to sunset analogue in India has been put at around Year 2015.

This will have far reaching implications on different stakeholders in the entertainment value chain.

For the economy it will mean additional tax collections by way of Service/Luxury/Entertainment taxes, since digital being an addressable system, the number of subscribers cannot be underreported by the cable distributor.

For the broadcaster it means better subscription revenues and less dependence on advertising revenues alone. This will help broadcasters to offer rich content and make investments in producing/acquiring content that matches global production standards.

For small broadcasters who cannot afford premium carriage costs charged by cable distributors for carrying such channels (since analogue cable systems cannot offer channels beyond a certain limit), it opens the window for wider distribution of such channels.

For viewers, it ensures more variety, better picture quality and the ability to choose what they want to view.

Not to mention, this growth will have cascading effect in augmenting ancillary businesses such as pre and post production facilities. This will not only create employment opportunities but also spur the demand of specialized talent in creative and technical areas thus necessitating the need for establishing institutes imparting these skills.

Let's tune in to the future bulletin...

 

April 6, 2011

Overcoming Challenges to Cover News From Rural Areas

Recently towards the end of Year 2010, a survey of 10 newspapers was conducted by an independent organization, representing North South East and West of the country. What emerged from the survey was quite startling; rural news is below 4 per cent of the total news coverage on Indian press.

The figure 4% when seen in isolation can paint a very dismal picture, however what needs to be analyzed are factors that inhibit newspapers from covering news from the hinterland.  Let's briefly touch upon some of these factors and possible solutions.

Lack of news bureaus at district or sub-district level -  From a cost perspective, it's prohibitive to appoint News Bureaus at each district and sub district for collection and distribution of news. It's a huge capital expenditure to set up multiple news bureaus at each district, appoint them with human/technical resources and associated infrastructure to support the resources.

A probable solution will be to co-locate news bureau with other news agencies/electronic media or if the publication has an established news bureau at district/sub district, it can amortize the news collection cost vide its syndication. Vice versa it can license syndicated news feeds, without incurring capital expenditure, from other publications/news agencies/electronic media having their bureaus at these districts.

Positioning of the Newspaper - Politics as a subject occupies the major space in a newspaper followed closely by Business and Economics. Considering the fact that most newspapers service urban and semi urban population, rural coverage is not a very interesting proposition for them. Instances of political violence, local elections or major protests reported from hinterland are the ones which usually make it to the newspapers.

Also a newspaper may not like to be positioned as one which appeals to a class of people who are interested in news from district/sub-district levels. This may hamper the perception of the newspaper to its large national advertisers thus effecting considerable revenues.

However there is a certain class of people residing in urban areas who would like to consume news pertaining to the hinterland. These are the people who've migrated to urban areas for better prospects and would like to be connected to their place of origin.

For a newspaper to satisfy the content needs of this class of readers, it can enable a wider coverage of rural news on its website. Alternatively the newspaper can launch mobile subscription packs specifically covering news from hinterland. The packs can be in the form of plain vanilla text SMS, Audio/MMS clips or a neat mobile application that can be customized to serve rural news.

Lack of rural coverage by mainstream media players opens up lot of opportunities for VAS content organizations to fill this gap.

January 31, 2011

Content & Advertisements - How do we offer convenience and at the same time pay back?

The very concept of home entertainment coupled with online media is in the grasp of a revolution.The growth of the Internet has not only increased the power of consumers, but it also allows users to access an unlimited amount of data and content at their leisure and according to their desire. Everyone knows that YouTube has been the king when it comes to video content, but as traditional programming continues to gravitate online, firms are seeking to establish themselves as the leader in that on-demand arena, by providing a combination of content and convenience to the users.

 

Apart from thriving on the content, the internet also awaits newer advertisements revenue models, particularly "Intelligent" advertising. "Intelligent" advertising is the capability to localize to a particular set of consumers for a specific type of business/organization/individual promotions.

 

Hulu was a pioneer in broadcasting content, and lots of it. But as time flies by, it is increasingly becoming clearer that content cannot alone garner success. And content through one channel will not. For example, the time being spent watching videos online is increasing at a breathtaking rate. Discontinuities in some parts of the value chain have provided and will keep providing attractive value creation opportunities.

 

There are several key trends that underscore this potential

 

  • Technology discontinuities across the value chain, creating opportunities (e.g. in TV, DTH capturing up to 30-40% of C&S households in 5 years and digital signage opening up dynamic advertising etc.
  • Regional media share of revenues and users increasing given increase in both quantity and quality of regional media. This trend rides on the fact that increase in consumption is mainly driven by growth in the middle level of pyramid where people are more likely to consume vernacular and regional media.
  • Decreasing costs of bandwidth and storage are removing the economic and practical barriers of having and distributing content for both content owners and consumers. Broadband is dramatically improving the user experience of watching streamed videos.
  • Increased penetration of internet leading to large market for internet oriented media opportunities. For a figure, the growth of broadband subscriber base in India in 2008 was almost 77 percent (Telecom Regulatory Authority of India (TRAI): The Indian Telecom Services Performances Indicators, April 2009) over the previous year.

 

These fundamental changes in the ways people access content are shifting mindsets to an "on-demand" mentality. People are becoming the programmers of their own personal television network, dictating what they want to watch and when they want to watch it. In recognizing this shift, two areas of opportunity come to mind.

 

  • Search/Navigation/Discovery of content. With so much content coming from so many different sources, the networks and cable channels are no longer the ones telling us what we "must see TV" is. Interesting content can now come from anywhere. However, more video options mean more videos to sort through to find something of interest. Convergence of platforms and media types only promises more complication.
  • New advertising models. As many people have predicted, TV advertisers will continue to see their 15 and 30 second commercials go increasingly unwatched. Brand advertisers, who spend the $60B a year on television advertising, will still need to find a way to reach their target consumers. The advertising budget of companies will increasingly go to new ad models that reach consumers in a more targeted and relevant way. And that's why I personally tend to believe that a disruptive advertising model is still to arrive.

 

Future Path:

 

There are already a few players who proclaim to be one-stop content distribution service providing immediate reach to a large, diverse and highly relevant audience for its content providers, who in turn receive full service content monetization through advertising, as well as reporting and metrics to view their content's performance. But a couple of things come to my mind which seem vastly underused.

 

  • Professional Video Publishing Platform. A simple-to-use, feature rich way to integrate interactive adverts into online video for both the self-serve and the enterprise markets. This service will enable publishers to manage, analyze and output online video and measure the effectiveness of their online campaign in addition to delivering brand engagement. Facebook is already doing it via user generated content, but somewhere the aspect of monetization is missing. Firms like Vdopia and Adetic provide professionally integrated platforms for setting up, analyzing and monetizing advertising for brands across platforms.
  • Video Blogging. A platform for video blogging which enables users to upload, embed and monetize their videos. 
     

Advertisement payment networks are plenty, but the dynamicity of this industry means that change is as fast as the time itself, and thereby a need for a robust and at the same time flexible system which integrates advertisements across internet, smart phones, IPTVs and all other platforms which pays back to the content user as well as the advertiser. After all, the question everybody would ask is, "What's there for me"?

 

Would be glad to hear supporting as well as counter views.

October 25, 2010

Mobile Payments Making Their Way into US

In my last month's blog I wrote about Billing Transformation being one of the top 3 priorities in 2010 for the carriers. This month we will talk about the technology that will matter the most for mobile phone users in the next couple of years.

Continue reading "Mobile Payments Making Their Way into US" »

September 29, 2010

Cable Industry - Improving Customer Experience is the need of the hour

In the last article, I talked about the need for personalizing the customer experience. In this article, I want to take a deeper view on what the cable companies could do on the customer experience. 

 

Cable companies have traditionally been at the bottom bracket of Customer Satisfaction surveys.  Not much effort was put in improving customer experience since the consumer choice was fairly limited. The monopolistic nature of the business allowed the cable operators to get away with not so great customer service. Not any more! Like we discussed in the earlier article, the last 2 years have changed the landscape in the industry substantially. Growth has slowed down and reversed in some markets. Competition has emerged from Telco community who also have a lot of muscle. Innovation has created different kind of competition with the likes of Google voice, Hulu, Joost and others.

 

With the new reality, and the necessity of retaining existing customers and ensuring that new customer would prefer them over competition, the cable operators need to take a serious re-look at their overall customer experience strategy. In my view, there are 3 broad areas that they need to focus on. These areas also correspond to the experience touch points that the consumer have with the operator

 

1.       Sales and Marketing experience:

a)       Provide a simplified sales experience through the web: Most of the cable Operators need to improve their overall web experience and increase the sales through the web channel. Currently, the % sales that the cable operators are able to do through the web is much smaller than the overall Telco industry and very low as compared with the Retail industry. As the internet is becoming increasing prevalent and a preferred channel for buying,  improving overall sales through web becomes very important. These companies should look at the Amazon's of the world for inspiration. Online Retail industry has gone a long distance in making the overall buying experience simpler and richer. There is a lot that can be adopted.

b)       Anticipate the consumer needs and proactively recommend products and services: The cable companies have a unique advantage of already being in the homes of a large number of people in the country. The need for the operators is to use this advantage to understand and anticipate their customers better.  The cable companies are running a initiative called as Canoe which focuses around collecting usage data from the set top boxes and using BI engine on top of the data to create meaningful information. While there is a lot of doubt with Privacy concerns, my belief is that once they work through the initial hick-ups, this will provide a powerful tool for the operators to anticipate the consumer requirements and position the right products and services in time to meet their need. 

c)        Provide integrated sales to order fulfillment experience. Move towards flow through provisioning:  Even today, there is a lot of swivel chair that happens during the Order processing cycle. If the operators can invest in realizing the flow through provisioning for most of their products and services, it will go a long way in improving the initial customer experience and also help in faster revenue realization.

d)       Provide an opportunity to reach a real person on the phone in less than 60 seconds : One of the most frustrating experiences is to hold for an sales or customer service rep to come on the line. Many times, the wait can be as long as 30 minutes. There are many things the operators can do to reduce this. First is to make the alternate channels like the internet and self-service stronger and better. This will divert the traffic and reduce the load on the call centers. Also, they might have to look at increasing the agents by going to low cost location and balancing the cost, but improving the experience.

 

2.       Support Experience:  The challenge here is to move to be proactive from reactive, to be predictive from diagnostic, and to reduce the Time to Resolve for any support request the customer may have. There are many areas that the operators can focus on

a)       Use of knowledge management to get to the bottom of issues in less time: Thousands of service reps providing service and resolving customer issues are creating huge experiential knowledge that is not getting captured and re-used today. The need for the operators to put in places systems, processes and incentives for the service reps to record their service experiences in a re-usable form. The intelligence engine and UI behind this should provide a way for service reps and for consumers (through self -service) to be able to diagnose the problems quicker and find resolutions faster. This will not increase reduce the Opex cost but also improve customer experience significantly.

b)       Alternate channels like chat and video calls: With the advancement of technology, there are tools available today that can allow for Consumers to interact with the service reps through chat as well as video conversations. This needs to be leveraged as well. The backend for the Chat function can be moved to a low cost location to get better bang for the buck.

c)        Provide updates on when an outage might impact the consumer: There is a need for a major overhaul in the service assurance framework of the operators. While the operators do get alarms from network elements when they are not functioning well, there is a bigger need to be able to co-relate these alarms, identify network dependencies so that the downstream impact of a network element on a services and locations can be established. Eventually, the framework should be able to reach out to the impacted customers proactively, thereby preventing huge spike in service calls

d)       Predict failures on the network before they happen and put in measures to fix them: The ability of the network to predict failures sand thereby prevent possible outages is someone that the operators should aspire for. Again, a solid service assurance framework with a predictive model needs to be implemented.

e)       Provide a social community based expert help for product and services:  The operators need to implement community support functions like blogs, wikis and many others that are widely used today in other industries. These provide an additional source of help for the customers and also go a long way in improving the customer experience through very less investment. The Operator can themselves be connected on these networks and ensure that the questions are getting addressed.

f)        Provide the ability to view and analyze bills and recommend better plans:  Many of the customer calls to the call centers are around billing queries. The Operators can divert and reduce many of these calls by provide the consumer the ability to drill down into their bills and also provide the ability to analyze their bills. They should also implement a recommendation engine which can recommend better plans based on usage patterns.

g)       Be able to reach a real person on the Phone within 60 seconds: This is again the same as listed under point Sales Experience. Also, if the operators most of the things  listed in bullets in this section, the actual calls to call centers would drop significantly.

 

3.       Service Usage experience:

a)       Invest in Usability Experience of products and services: Along with creating a product or service which has good functionality, it is equally important to ensure that it very usable. Any easy way to understand this is to look at Apple products. They all bring in an excellent visual experience to the users as well as a simple and efficient way to use the products. Simplicity, efficiency, visual aesthetics, consistency, minimum steps, performance are all very important considerations, perhaps as important as the feature functions.

b)       Bring Multichannel capabilities: With the improvement in connectivity and data transfer speeds, home Television is just one of the many devices that the consumers want to view their content on.  The operators need to move fast to provide this multi screen experience to the customers.

c)       Competitive Feature functionality - Faster Innovation cycle: Big companies are facing increasing pressure from small, niche players who can bring innovation much faster to the market. Operators need to re-look at the their systems, processes, org structure and culture to  create a eco-system to respond faster to their user requirements. The need for quick innovation is relatively new to this industry and will require a major internal over haul to make it happen. 

d)       Convergence: Another way to fight the competition from niche players is to be able to create offerings which can combine the multiple products as a differentiated service. Services like Phone Ubiquity with one number or to be able to use the Home Phone from Mobile or Web, Video services available through Mobile and Internet, Universal Address book and Voice Mail that can sync up between different phones - home phones and mobiles, Caller ID on PC, TV and Mobile,  manage home phone and TV through Mobile, web; and many others.

 

Each of these areas can be further expanded with a lot more data and details, but that for another time.

 

September 27, 2010

Is US Cable Industry Ready for the Challenge?

Cable Companies in the US have long enjoyed being in a monopolistic market. Amongst themselves, they are a fraternity and mostly do not compete in each other's territory. Outside of them, there was traditionally no other service provider who could provide the bundle of voice, video and data to the consumers.  While they were competing with the Satellite Providers on video, the challenge was not very threatening to their growth.

 

However, over the last 2-3 years, certain shifts have happened in the economy and communications industry which have impacted or are threatening to impact the cable industry.

 

1.       The top 2 Telecom operators have entered into video space. ATT and Verizon have made their claim on the video programming distribution space and have entered with a lot of muscle. ATT through its U-verse offering and Verizon with its FIOS offering have captured market share and now have decent number of subscribers. Recent reports put the ATT video subs at 2.3 M and Verizon at 3 M. Compare that to Cable Vision at 3.0 M subs and Cable vision is the fifth largest Cable Operator. These operators have brought in fiber which promises to bring very high bandwidth to the consumer and also their innovation pace is faster than the Cable Industry

2.       The Rise of "Over the Top" video players. With the rapid growth in internet and the likes of U-tube Hulu, Joost and others, content is no longer distributed through the traditional TV network. There are many players in the market who provide access to content through internet. If this continues to be a trend, the advertizing revenue would also slowly shift to these new channels of content distribution. Also the negotiation power of the cable operator with content producers would also continue to reduce

3.       The rise of Skype, Google Voice kind of players which are enabling free phone service through VoIP are a certain threat to the Traditional Voice service which works on the subscription model. These again ride on the internet and as the Internet becomes ubiquitous on devices, would provide a no/low cost phone solution to the consumer.

4.       Cable Operators have always been in the bottom bracket on Customer Satisfaction in the Communications industry. Again, the shift in the market dynamics has made these companies sit up and re-look at customer experience with a bigger sense of urgency.

 

With the product differentiators fading away, the cable companies need to put on their thinking caps and take the battle to the enemy

 

In my opinion, there are 5 major areas that the cable companies should focus on to meet the challenge

 

 

1.       Shift to being service centric from product centric: Traditional business model in Cable has always focused around product subscription based revenue with fixed monthly billing to the consumer for different products like video, High speed internet and Home Phone. But with the products themselves becoming commodity, the need is to engage the customer with innovative services which may sometimes sit on top of multiple products like convergence based offerings, and could provide entertainment services, communication services and many others. The products should move into lower strata enabling a service creation layer on top of the products to bring faster innovation to the consumer. This would also make the companies more customer centric and hence more sticky to their consumers. To make this happen would also require the operators to structure themselves differently from their current product based structure.

 

2.       Instead of fighting "Over the top" become "Over the Top":  Providing customers with alternate channels to access the content including through internet, mobile devices and others would really go a long way in retaining the customers from moving to "over the top" providers. Customers would prefer hanging around with their existing service providers if they get the flexibility they need. Some of these initiatives would require deeper relationships with content providers and different business models. Initiatives like "TV Anywhere" by Cable Operators is a step in the right direction.

 

3.       Personalize the customer experience: With competition coming in from all sides and the consumer having plethora of choices, the only way to retain the customer is to personalize his/her experience with the operator.  The need of the hour is to understand the customer better and be proactive in reaching out to them before they feel the need to reach out.  Cable companies need to focus on Knowledge based customer service, customer analytics, customer profiling, creating multiple channels for enabling easy reach, being proactive in reaching out to customers on potential issues/outages. The customer should be at the center of all innovation and strategy.

 

4.       Get closer to Content: With alternate distribution channels for content becoming a reality, the cable operators are fast losing the stickiness on the video offerings and with that also lowering the negotiation powers with the content providers. Slowly but surely, the importance is moving to content owners from distribution channels. To capitalize on this, there is an increasing trend among Cable Operators to get more content ownership. The recent acquisition of NBC by Comcast is an excellent example of the Operator trying to protect the market by owning the content

 

5.       Faster innovation is the key: Like we discussed, cable business no longer enjoys a monopolistic setup and competition is slowly creeping in.  This has created a need for faster innovation. This is a bigger problem than it seems. Cable business, its organizational structure, systems, processes, culture have traditionally not been geared to fast innovation. Making this major shift would require major changes across the organization. This is already happening in varying degrees across the companies. We need to wait and see the results of this in the coming years

 

These are interesting times ahead for the Cable Industry. While the threats are real, so are the opportunities.

September 7, 2010

Mobile Payments: Opportunity is big, alright! But, what's it going to take to get it off the ground?

I wanted to follow up my last blog post on Mobile Payments with my thoughts on how the Mobile Payments ecosystem is evolving and the need for all the players to come together to get it off the ground.

Today's digital consumers are willing to handle most of their transactional needs themselves through self serve applications. This is evident from their adoption of Mobile Apps for doing just about anything in their everyday life. The ubiquity of mobile devices coupled with the advent of ePayment instruments has resulted in the convergence of Wireless industry and Financial Services industry with a potential to transform the way financial services are delivered to the consumers.

Continue reading "Mobile Payments: Opportunity is big, alright! But, what's it going to take to get it off the ground?" »

August 22, 2010

Cash, Card or Mobile, Sir? Mobile Payments revolution has begun!

Consumers,these days, are buying more smart phones than ever which can be attributed to the success of platforms like Apple and Android! The incredible growth of the App Store model has resulted in consumers having access to Smart Phone applications for just about anything. Their is also an increasing adoption and willingness to adopt these devices for accessing various services including Gaming, Media, Internet Browsing, Navigation and Travel. But one of the most significant areas that these devices and apps have started penetrating into is the payments and banking space. 

 

Continue reading "Cash, Card or Mobile, Sir? Mobile Payments revolution has begun!" »

April 25, 2010

Enterprise Mobility : Gateway to a World of Opportunities

I had co-authored an article on this topic that appeared in Wireless Week a few week ago.  I wanted to summarize my perspectives here that I shared on the article.

Four billion mobile connections and counting. The growing ubiquity of mobile phones, their increasing computational capabilities and the increasing penetration of high-speed mobile wireless networks have made wireless connectivity more reliable. Over the years, the Enterprise Mobility market has gone beyond simple Enterprise Personal Information Management (PIM) and e-mail access on the mobile.

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March 29, 2010

Significance of KPIs in monitoring operation health

In today’s world the biggest challenge in front of the Service Providers is to decide on which business area they should focus more on. There is a dilemma on whether it has to be Operational Excellence, Customer Intimacy or the Product Leadership. Moreover it is very difficult for them to choose and analyze the right sets of Key Performance Indicators (KPIs) for each business area which are not only responsible to drive these processes but also act as a key factor to enhance the business by correlating different business elements within the focused area.

Continue reading "Significance of KPIs in monitoring operation health" »

February 24, 2010

Is Mobile App Store Fragmentation here to stay?

I had addressed this subject of App Store Fragmentation in one of my earlier posts. And I started thinking about this question especially in the backdrop of the news about the Wholesale Applications Community (WAC) which unraveled in the recently concluded Mobile World Congress (MWC) in Barcelona.  WAC, backed by 24 operators and 3 OEMs, is an initiative to create a single, unified, open platform where mobile app developers can build and deploy applications that can work across a universe of devices and operating systems supported by these 24 carriers. Potentially, this could be a miracle for app developers since they can make their apps available for “the largest” target subscriber base across a roster of carriers.

Continue reading "Is Mobile App Store Fragmentation here to stay?" »

February 21, 2010

The coming flood of connected devices! Are the carriers ready?

Mobile Network operators (MNOs) are in a very good position to capitalize on the Embedded Mobile devices opportunity that includes Machine-to-Machine (M2M) communications. We are already seeing major operators including Verizon, AT&T and Vodafone investing significant resources into their emerging devices and M2M groups.

Continue reading "The coming flood of connected devices! Are the carriers ready?" »

January 13, 2010

Mobile Augmented Reality (AR) – Can it take off?

Mobile Applications market is growing at an unprecedented pace. Evolution in technology has enabled mobile devices to grow dramatically in features and computational capabilities. Innovation in the Mobile applications space is being fueled by the capabilities of the newer generation of devices and a growing number and success of Application Stores.

Continue reading "Mobile Augmented Reality (AR) – Can it take off?" »

January 4, 2010

Dawn of a new decade – Exciting times ahead for the Mobile industry

First of all, a very happy and prosperous new year 2010 to everyone out there. In this first post of 2010, I thought I will share my perspectives of what this new decade could hold for the Mobile industry.  Mobile industry has been a very interesting and a highly dynamic industry over the past decade. Mobile subscriptions have grown multi-fold across the world and we are seeing a big shift in the business models – revenues are now being driven by Data services more than it used to be by the Voice services.

Continue reading "Dawn of a new decade – Exciting times ahead for the Mobile industry" »

December 24, 2009

Making money in the App Store Economy

The new App economy has created a gold rush in which everyone (ISVs and individual “mom and pop” developers) is looking to cash in. Today, there are hundreds of thousands of Apps developed by thousands of developers. The success of an application and its ability to make money in this new gold rush depends on 2 factors – adoption and customer experience differentiation.

Continue reading "Making money in the App Store Economy" »

December 14, 2009

Mobile Application Marketplaces - Where are we headed?

Smart phone market share is growing faster than ever before. Since iPhone was introduced, there has been a sudden surge in Smart phone adoption. Every Smart Phone maker is now trying to compete with Apple’s iPhone and it’s App Store. Mobile Application Stores, though not a new concept, kicked off with renewed vigor since the introduction of Apple’s App store which has already seen 2 billion downloads just a little more than a year since launch.

Continue reading "Mobile Application Marketplaces - Where are we headed?" »

December 12, 2009

Creating a differentiated experience - Key to App Store Success

The Application Marketplace phenomenon has spread like wild fire since the introduction of Apple’s App Store. Since then, it has caught the attention of almost every OEM and Operator who has launched (or in the process of launching) App Marketplaces. All the App Stores, together, now have hundreds of thousands of Apps developed by thousands of developers.

Continue reading "Creating a differentiated experience - Key to App Store Success" »

November 25, 2009

M2M: With new opportunities comes the need for new business models

From the perspective of Mobile Operators, the M2M (and more precisely embedded mobile devices) space is proving to be the next promising avenue to explore in terms of revenue potential. One of the biggest incentives for the Operators to take the M2M route is monetization potential that M2M holds for their Networks. Over the past 5 year or so, most of the operators have invested lots of money in building out their next generation high speed networks and now its time for them to look beyond mobile devices and data cards.

Continue reading "M2M: With new opportunities comes the need for new business models" »

November 17, 2009

M2M: Ushering in the dawn of endless possibilities

It has been a busy time in the market for M2M. We have been hearing the term M2M (Machine-to-Machine) more often these days than before. For starters, M2M refers to technologies that enable machines to communicate with each other and backend IT systems freely exchanging information.  So why this sudden interest and hype now?

Continue reading "M2M: Ushering in the dawn of endless possibilities" »

October 5, 2009

Shopping for a MAP ?

Mobile Advertisement Platforms (MAP) seem to have come a long way in providing the Telco a superior ability to provide Value Added Services for their end users.  While the Telco world is agog with Service Delivery Platforms, Converged Services, Hybrid plans and the likes of it, the MAPs seemed to have made a silent revolution in aligning their architectures to give a better service to the Telco.  So if you are shopping for a MAP what do you look for typically?

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September 20, 2009

Mobile Marketing: What’s in it for Operators and Consumer-focused Enterprises?

Marketing and advertising has been an essential form of communication through which Consumer-focused enterprises educate and create awareness amongst their consumers. Traditionally, they had been using Print, Direct Mailers and Billboard displays until the dawn of Internet. The mass adoption of Internet and the Web 2.0 era resulted in these companies increasing the share of their Ad-spend on Online based Marketing & Advertising campaigns.

Continue reading "Mobile Marketing: What’s in it for Operators and Consumer-focused Enterprises?" »

September 19, 2009

Enterprise Mobility: The Changing Market Landscape

I have been sharing a lot my thoughts on innovations and market trends in the Wireless Applications space. In my last blog on Enterprise Mobility, I tried to describe my thoughts on the next of wave opportunities for businesses and brands. For once, I wanted to take a step back and share with you my questions for which I would like to hear your thoughts.

Continue reading "Enterprise Mobility: The Changing Market Landscape" »

September 5, 2009

2CC: Getting more out of Cable…PPVH metric and beyond…

Value articulation is a big deal in every industry. Cable industry uses an interesting metric to articulate value and defend price increases. The National Cable & Telecommunications Association (NCTA), the organization representing the MSOs in the US, defines value in terms of Price Per Viewing Hour (PPVH). In simple terms, PPVH = (Price of cable service) / (Amount of time an average household spends on TV). NCTA estimates the PPVH for Digital video, as of 2007, to be 33 cents. PPVH as a mathematical equation throws an interesting conundrum...

Continue reading "2CC: Getting more out of Cable…PPVH metric and beyond…" »

August 30, 2009

Enterprise Mobile Applications – The next wave of opportunities?

The digital lifestyle of people is revolutionizing information consumption. Being online and always connected has become a lifestyle of the Gen Y’ers a.k.a the “millennials”. The change Web 2.0 era has brought in (further exemplified by the technological advancements across mobile devices and enabling infrastructures) has changed the meaning of being “Online”. We started seeing this happening on the mobile devices when the growth of device platforms such as the iPhone and Android created a near-PC like experience on mobile phones and elevated them to a level where they can effectively replace PCs for day-to-day needs. Today, this is being extended to the living room through Interactive TV applications that enable people from accessing information about their local area, to update their status on Facebook and to order a Pizza.

Continue reading "Enterprise Mobile Applications – The next wave of opportunities?" »

August 26, 2009

Voice of Customer Analytics - a managed service offering for CSPs

In the wake of the global economic crisis, firms across industries and geographies have come under tremendous pressure to reduce costs. Most have responded by adopting a 'Capex Freeze' and 'Opex Reduction' mentality, which has been evident in their spending decisions, including those involving their outsourcing partners. Communication Service Providers (CSP) has been no exception!

Against this backdrop, Analytics as a service offering assumes significance, considering its potential to deliver quick and tangible Return On Investment (ROI) against relatively minor investments on the part of CSPs.

Continue reading "Voice of Customer Analytics - a managed service offering for CSPs" »

August 14, 2009

FTTX rollouts and 'last-mile' solutions

Across the world one can see the ever increasing FTTX (Fiber) rollouts. These capital intensive rollouts are largely driven by the anticipated bandwidth needs of the next generation TV,  network hosted applications and the networked home appliances & devices.

The CSPs have been so focussed on the rollout of these new fiber access networks that little time has been spent on planning for the 'last-mile' solutions / services that would be required to support the new fiber based offerings.

Continue reading "FTTX rollouts and 'last-mile' solutions" »

August 10, 2009

2CC: How expensive can it get for the Cable companies to improve Customer Experience?

For a large online DVD rental company and a leading innovator in content delivery space, the tab or a fraction of it seems to be $1 million. While this news could be dated, NYT recently covered an interesting story on how Netflix is wrapping up the 3-yr, $1 million contest.

Continue reading "2CC: How expensive can it get for the Cable companies to improve Customer Experience?" »

August 8, 2009

Customer Service - The key differentiator?

In the UK, there are at least 5 major mobile service providers, with several others also offering services for the end consumer.

For a new prospective mobile customer, trying to choose between the various tier-1 providers, the choice is honestly a difficult one most times. What differentiates one from the other?

Continue reading "Customer Service - The key differentiator?" »

July 22, 2009

Is the service provider becoming obscure?

I have been thinking about the mindshare a service provider actually has in the overall experience of the consumer. I am inclined to believe that the service provider itself is gradually fading away from the end customer - is this something for service providers to worry about?

 

Continue reading "Is the service provider becoming obscure?" »

June 5, 2009

US DTV transition - a week to go

We are a week away from the new Digital Television (DTV) switchover date of 12th Jun 2009.  As per the latest NAB & Nielsen estimates, even though about 82% of the affected consumers are prepared, about 2 million have still not taken action. The concern is that many of them may be senior citizens who may end up without television service and may require help.

Continue reading "US DTV transition - a week to go" »

May 31, 2009

Riding the Netbook wave

We have seen a number of announcements from Wireless Operators recently regarding Netbooks. Most of them have either announced plans to sell netbooks or have already started selling them. With advent of iPhone and other Smart Phones, a new form factor of devices emerged which was seen as an opportunity for Wireless operators to promote high-priced data plans. This not only helped them to monetize these phones and grow their customer base but they also saw a multi-fold rise in data usage.

Continue reading "Riding the Netbook wave" »

May 15, 2009

International CTIA Wireless 2009 – The Final Roundup

Wireless industry is perhaps one of the most innovative among other industries. The industry players are constantly trying to “woo” their customers through innovations in device, content and the core-network that serves the customers.

Continue reading "International CTIA Wireless 2009 – The Final Roundup" »

Innovative ways to generate revenues from Mobile Games

The previous post on Livewire by Sankar highlights one pretty interesting fact about the increasing willingness of the users to pay for Mobile Games. With the advent of iPhone and other smart phones, there is a transformation happening in the Handheld Gaming space and we are seeing sophisticated games coming to mobile phones.

Continue reading "Innovative ways to generate revenues from Mobile Games" »

May 6, 2009

Outdoor 3.0

The Out-Of-Home (OOH) media is undergoing seismic changes on multiple fronts.  Outdoor 1.0 was characterized by static white screens – much like the dull white toothpaste. Digitization of the billboards has brought in Outdoor 2.0 and is making outdoor as "THE BIG SCREEN". It is fundamentally changing the way advertising buyers bought outdoor media and planned day parting - from buying locations to buying time. Population-driven metrics are able to measure outdoor advertising and its effectiveness.

Continue reading "Outdoor 3.0" »

May 5, 2009

"Humanics” : The mantra for the next-gen Telcos

The world of Telecom seems to be at an inflection point today.

Historically, Telcos have always viewed themselves as the “network guys” – being obsessed with QoS. The assumption being that if they got QoS right – almost nothing else mattered. It was not important to intimately know the customer. The business model seemed to be pretty much a “utilities business model” – turn on the connectivity, setup a billing address and run the billing meter!

 

 

Continue reading ""Humanics” : The mantra for the next-gen Telcos" »

April 22, 2009

A la Carte Video Services – possible in the future?

After the departure of Kevin Martin from the FCC, the general consensus seems to be that a la carte video services will be on the back burner in the US.  In the past few years, this is a concept that has been widely sought, analyzed, debated, reported and vilified.  As is to be expected, there are diametrically opposite positions taken by Consumers and Service Providers (Operators & Networks).

Continue reading "A la Carte Video Services – possible in the future?" »

April 13, 2009

The Buzz from International CTIA Wireless 2009 – Part 2

More smart phones flooding the market!!  

Mobile phones are becoming smarter by the day. User experiences they enable and the features they bring to the consumers just keep getting better. A number of device makers including the likes of Samsung, LG, HTC, INQ and Nokia show cased their latest line up that will make the device market even more competitive and will drive more consumers towards smart phones.

Continue reading "The Buzz from International CTIA Wireless 2009 – Part 2" »

April 6, 2009

The Buzz from International CTIA Wireless 2009 – Part 1

App Stores in high gear!!  

The big story line we saw at this year’s CTIA is the rise of App Stores with yet another App store being launched, this time from Blackberry. In response to the competition, RIM has launched the Blackberry App World, the support for which will be rolled out to all Blackberry phones in the US, UK & Canada. With this launch, nearly every OS maker has launched or has announced the launch of such application marketplaces.

Continue reading "The Buzz from International CTIA Wireless 2009 – Part 1" »

April 4, 2009

After iPhone now it is AppStore for TV

While techies around the world are still grappling with iPhone Appstore and a slew of similar one's from Microsoft, RIM etc, Verizon recently announced the launch of their "Widget Bazaar" for FiOS TV (http://nab365.bdmetrics.com/NST-2-50202557/Verizon-Getting-Closer-To-Blending-TV-With-Web.aspx) ushering in a new era in the space of convergence by merging web and TV.

Continue reading "After iPhone now it is AppStore for TV" »

February 19, 2009

Emerging Mobile App Stores - How can Mobile Operators address this Opportunity?

Mobile Application marketplaces received little attention until Apple released its App Store for the iPhone. This move essentially provided a platform for new innovative services and applications developed by 3rd parties. In my previous post, I had discussed the evolving mobile application market landscape and the need for Mobile Operators to move in quickly and monetize this opportunity.

Continue reading "Emerging Mobile App Stores - How can Mobile Operators address this Opportunity?" »

February 14, 2009

Growing demand for mobile content and applications - The next big thing for Operators

With over 3 billion mobile users today, mobile devices have become the most ubiquitous communications medium in the hands of the consumers. People who communicate through social networks have grown multifold. Users are increasingly consuming more and more content from social media sites like YouTube. Innovative mash-ups that combine the strengths of location based services are becoming a big hit. Number of users consuming content on-the-go is multiplying as is evident from the growth in mobile broadband usage.

Continue reading "Growing demand for mobile content and applications - The next big thing for Operators" »

January 13, 2009

Customer Experience with innovations in network services

Organisations are facing unprecedented challenges in the given economic environment. Their customer’s expectations are ever increasing where as the resource availability is fast plummeting.

Continue reading "Customer Experience with innovations in network services" »

December 12, 2008

Texting into Space and Beyond with Virgin Mobile

Virgin Mobile is running a promotion with a partner company called SentForever that will make your text messages intergalactic instead of simply ending up on your friend’s phone. The service uses a high powered transmitter located Cornwall, UK at BT’s Goonhilly earth station. While I shudder at the fact that other intelligent life may be bombarded by messages such as “U R my BFF LOL!!!!” because I am not sure they would deem us as intelligent (you can decode the message at www.internetslang.com), I am impressed with the value of the promotion to Virgin Mobile. In a down economy, they are running a free promotion utilizing an interesting gimmick that captures the sender’s and receiver’s first name, last name and email address which could provide a wealth of new leads for Virgin Mobile. I am always impressed with Virgin’s ability to connect with their target market and this is another example of their thinking outside of the box.

December 4, 2008

Video Everywhere, But How Do I Find It?

We have more video available than ever before in the form of video on demand for television, internet and mobile devices. The amount is staggering when you add in user generated content and broadcast,. The good news is that, according to a recent Neilsen report (http://www.tvweek.com/news/2008/11/viewing_across_screens_grows_n.php), the average US household is watching TV for a whopping 8 hours and 18 minutes a day! You then add the 27 hours of online and 3 hours of mobile video per month for a seemingly massive customer base that cannot get enough video (or time outside the house).

Continue reading "Video Everywhere, But How Do I Find It?" »

December 3, 2008

Expanding the Value Chain and Bumping Into Incumbents

Here is some news that may have flown under your radar, Nokia is supposedly launching a MVNO in Japan in 2009 (http://www.fiercewireless.com/story/nokia-launch-its-own-mvno-japan/2008-11-24). This received considerably less press than Google looking to buy spectrum in the US, but has similar ramifications as it gives the handset giant an ability to test the waters as a service provider (obviously not owning network assets) in an eastern market targeting high end phone users. The significance here is the evolution from handset provider to creating direct to consumer relationships via retail stores (online and offline) to owning content with Nokia Live venues to providing content platforms for mobile service providers to now being the mobile service provider. Assumedly, Nokia should understand phone distribution, content retailing, provisioning and billing enough to be successful if their service is attractive to their target niche.

Continue reading "Expanding the Value Chain and Bumping Into Incumbents" »

November 24, 2008

Are websites keeping pace with the Mobile Web evolution?

As I mentioned in my previous blog entry, the evolution of web browsing experience triggered by iPhone, Android, Blackberry and other new devices have attracted   a large mass of users to mobile web. Even the mobile browsers like Safari and Opera have started to evolve to dramatically improve the mobile web browsing experience. With these radical changes taking place, the lines between the PC and Mobile browsing experience have started to blur. But do the B2C websites keep pace with this mobile web evolution?

Continue reading "Are websites keeping pace with the Mobile Web evolution?" »

November 20, 2008

Death of Long Tail User Generated Content?

I have been sifting through a number of articles lately in regards to long tail video content. The latest meme has been the death of the long tail, I would say more specifically, the death of monetization of user generated video content. Just to be clear, long tail content available from various artists and producers will continue to be consumed by niche users, there is a model to monetize those revenues with a large digital library that is not moving physical goods (see The Long Tail by Chris Anderson). Additionally, certain user generated videos will continue to draw “crowds”. However, there are a few different trends that are affecting the model that we initially assumed where money would follow the user generated content (UGC) eyeballs.

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CTO in the Limelight

One of the more interesting developments mixing technology and politics has been the intent of the US President Elect Obama to create a CTO cabinet position for his White House team. Currently, there is not a single position in the Cabinet that drives technology strategy for the White House and this only seems like a logical position to create. My question would be “why did this take so long”? No major company operates without the use of technology to help run their business. Furthermore, leading companies use technology to create competitive advantage against their rivals through an optimized supply chain, business intelligence capability, sales force tools or a number of other uses. The same should hold true for the US government which is a massive entity in its own right.

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November 16, 2008

As mobile phone content explodes, the Walled Gardens crumble…

Over the past years, we have seen the Wireless industry undergoing a significant change – the service providers’ walled gardens have continued to disintegrate with the explosion of the content and applications available for Mobile phones. In my opinion, a couple of factors have contributed to this phenomenon.

Continue reading "As mobile phone content explodes, the Walled Gardens crumble…" »

November 14, 2008

Innovative Ways to Drive Advertising Revenues

Two recent stories really caught my attention as innovative ways to drive additional advertising revenue. The first comes from Sky TV in the UK and the second from MTV Networks (part of Viacom). I would consider both case studies very significant and unique.

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November 3, 2008

Use of Mobile in the 2008 US Election

While we have already seen candidates in past US Presidential elections utilize the internet, mobile has become significantly more important than in previous election cycles. This has as much to do with shifts in consumer behavior as it does with new campaign strategies. While Americans were early adopters of the internet, a large part due to the telecommunications infrastructure in place, they had much slower uptake of mobile data services in comparison to peer countries in Western Europe.

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November 1, 2008

Breaking Through with Android and the G1

I have to hand it to Google, they have shown considerably more momentum as of late in regards to their Android platform. Maybe their strategy is to lull you a bit before striking, as release in to the market was panned by many writers as being uninspiring. I myself have been a bit lukewarm in previous blog entries in regards to the Android initiative as well, but I am starting to reconsider my position. While I am not completely sold on the idea that T-Mobile will get the boost from G1 that ATT is getting in terms of new customer adds in the recent quarter from their iPhone (2.4M third quarter iPhone activations http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26227). I am sold on some recent moves by the handset manufacturers and the Android model for the operators.

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Consolidation and Pressures on the Telecom Industry

Consolidation is normal in most industries. Obviously extreme market conditions can lead to the “shotgun” marriages that are now happening in Financial Services, but Telecom has been relatively unscathed in the recent downturn. In the case of Verizon getting Alltel, Verizon may have benefited from the private equity consortium offloading Alltel only after holding it for one year (http://www.nytimes.com/2008/06/06/technology/06phone.html). Since most private equity firms hold their portfolio companies for considerably longer than one year, Verizon might have lucked in the deal to now create the largest wireless carrier in the US. The most recent merger news has been CenturyTel acquiring Embarq, which is a good move in my opinion, to give CenturyTel additional scale in its core market (http://www.centurytel.com/Pages/AboutUs/PressRoom/pressRelease.jsp?page=Corporate/Press_Release66.html). In full disclosure, I have met most of the C-level executives at CenturyTel and have faith that they will do a good job in with the combined entity even though they are merging with a larger company. My only current concern would be lack of a stronger wireless footprint in order to create a “quad-play” offering. This is probably the start of other rollups of rural operators.

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October 17, 2008

Bringing Interactive to the TV

Occasionally good fortune befalls me for timing with my blog posts. Sean Buckley had a nice piece on changing TV viewing behaviors (http://www.telecoms-mag.com/article.asp?HH_ID=AR_4518) which corresponded nicely with my attendance at the Microsoft Mediaroom Developers conference this week where I was able to see some of the newer innovation possible on their TV platform. While I saw some incredible user interfaces with interactive applications, the question really comes down to an issue of usage by the end customer. As a veteran of many discussions regarding “lean forward” or “lean back” experiences for the TV, I tend to agree more with Sean’s position regarding the need to change user behaviors before traction will occur. This is not impossible to overcome. A good parallel to draw in regards to customer uptake would be significant explosion in online video consumption where users started using the online channel when compelling content became available.

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October 14, 2008

What is new with online video?

I spend so much time discussing IPTV, I sometimes forget to spend some space blogging on online video. Essentially the truest form of IPTV, online video is a trend on the upswing which is validated by the latest report from ABI Research showing the number of households watching online video doubled from 32% in 2007 to 63% in 2008 (http://www.abiresearch.com/press/1247-Number+of+US+Online+Households+Watching+Broadband+Video+Doubled+In+One+Year).

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October 9, 2008

Selling Solutions in a Tight Economy

As I mentioned in a previous blog entry, the current financial market conditions are pretty scary out there and I tried to review some areas of impact. In this entry, I want to cover some strategies for dealing this these problems and selling effectively in this market.

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October 8, 2008

Video Interview at CTIA on Mobile Trends

 

September 30, 2008

Impact of the Credit Crisis on the Mobile Industry

Since the credit crisis is absolutely dominating news topic (with good reason!), I would feel remiss if I did not at least provide some coverage to this issue. While I will not go into the intricacies of a bailout package or credit default swaps, I will address the potential impact to the ecosystem around the mobile communications industry. Disclaimer- do not construe any of this as investment advice or financial guidance from Infosys.

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September 23, 2008

The Buzz from CTIA Wireless IT & Entertainment

More specifically, the lack of buzz from CTIA Wireless IT & Entertainment show in San Francisco was the big story line. In my opinion, the most interesting vendor announcement to me was expansion of the Yahoo! Blueprint platform (http://mobile.yahoo.com/developers/roadmap) and OneConnect messaging integration to include aggregation of Facebook, MySpace, Bebo, Flickr and Friendster. Yahoo! has made considerable inroads in the mobile space, I am not sure if they are able to really monetize these offerings or if the real money is simply with mobile search where Google is leading quite handily in most western markets according to the last comScore research (http://www.comscore.com/press/release.asp?press=2469).

 

Continue reading "The Buzz from CTIA Wireless IT & Entertainment" »

Being the Portal for Mobile Social Networking

It seems like a good idea has really catching on with the mobile operators lately. Last year we saw announcements regarding mobile access to social networking sites on their handsets (see Vodafone and MySpace http://www.vodafone.com/start/media_relations/news/group_press_releases/2007/myspace_launches_exclusive.html)  and driving of upgraded data plans to support the accompanying activity (revenue was also initially generated with monthly subscriptions for access, but that quickly went away since there was not exclusivity for the carrier and competition drove the subscriptions to zero). This lead to the next round of innovation to partner on special initiatives like a web 2.0 music offering to increase the mobile operator premium (see Vodafone and MySpace part II http://www.vodafone.com/start/media_relations/news/group_press_releases/2007/vodafone_teams_up.html). Now mobile operators are moving even further beyond the “dumb pipe” and taking more control over the social networking interface. Verizon SocialLife and ATT My Communities have launched respectively to provide a starting aggregation portal to access information from a variety of social networking sites (sorry no Facebook as of this posting). The consumer can still directly go to their favorite social networking portals via a mobile browser or downloadable application, but would have to login to each separately.

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September 16, 2008

Mobile App Stores Are Suddenly Everywhere? -The Apple Influence

Mobile Application Storefronts are very simple concept, but received such little fanfare until the new driver of the mobile industry, Apple (yes Apple, the non-traditional mobile competitor), released its App Store for the iPhone. This move essentially provided a marketplace for new innovative content or services developed by third parties to be purchased or used by iPhone owners. At first glance, this seems very similar to current developer programs provided by handset manufacturers like Forum Nokia, marketplaces for platform providers like Window Mobile Catalog, or storefronts for application aggregators such as Handango, so why the fuss since this is old news? In a nod to the existing incumbents, there is a wealth of information regarding mobile applications, content reviews and developer support. So why after the Apple App Store launched, followed by the Google Android Market announcement (promising immediate time to market for developers) did Microsoft need to announce a relaunch with Skymarket for Windows Mobile and then Symbian (read: Nokia) following suit with a another marketplace? Don’t we have enough, aren’t they already there? My guess is a significant amount of press coverage to go along with a $1M/day sales number over the first month of launch and recent announcement of 100M downloads has something to do with re-launches.

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September 9, 2008

Social Networking Moving Along the Hype Cycle

Social Networking seems to be tracing a normal hype cycle for popular innovations in the market. It is a scenario where a core group finds value in a concept, it progresses almost under the radar until it makes that mass market leap to “cross the chasm” (to use Geoffrey Moore’s famous concept*) into wide mass market adoption. By this time, venture capital would have been funding the early leaders, the media would breathlessly cover the subject, valuations would skyrocket, consolidation occur as traditional players try to buy into markets or provide their solutions, and then at some point we actually have to make some money doing it. We are obviously to the point where someone needs to make money doing “social networking”, but what are those next steps?

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September 4, 2008

Adding Advertising to the IPTV Business Model

The problems of justifying the ROI for an IPTV deployment have been widely documented by many analysts and media outlets. Most generally, cost concerns about the associated network infrastructure, software platform uplift, customer premise equipment and content acquisition for an IPTV deployment seem to be the biggest issues. However, Telcos must provide IPTV services as a defensive hedge against triple play offerings of voice, broadband and video from competitors such as cable companies. This issue can be addressed by revenue streams beyond monthly subscriptions which include interactive services and advertising. The breadth of interactive services and deployment into a lean forward/back environment with TV remote navigation is a subject upon itself, so I will focus on the potential and complexity of providing advertising to the IPTV platform.

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August 29, 2008

Content Delivery Networks (CDNs) for everyone

I thought it was just me, but I was thinking that there seemed to have been an unusual number of announcements lately regarding Content Delivery Networks (CDNs). Luckily, Dan Rayburn of Frost & Sullivan (who has a good blog by the way http://blog.streamingmedia.com/the_business_of_online_vi/) confirmed those suspicions recently in some of his postings and reports. His number for new CDN investment over the last 18 months is near $400M, this is in addition to whatever investment has been made in current CDN providers’ infrastructure (e.g. big players like Akamai or Limelight Networks or telecoms like Level 3 or BT). If this seems eerily similar to the heady dot com days circa 2000, I feel you have guessed correctly. That last meltdown resulted in a fire sale of cheap fiber to beneficiaries such as Google and others who astutely picked up those assets. How will it turn out this time?

To answer that question we need to look at what is driving demand in this latest round. The need to distribute even more content to greater reaches of the network for sharing for sites like YouTube or social networking is part of the equation. The other side being for enterprises requiring data management or content owners (e.g. Viacom, Disney) needing reliable distribution. However, this just begs the question of at what point do we have enough bandwidth? You could look at Microsoft’s decision to spend $2B to further develop its own data center and network infrastructure to create competitive advantage and provide managed services to large enterprises as a proxy answer being “obviously not enough”. Well, closer inspection reveals that the new managed services or other value add on top of those large pipes is the real opportunity beyond bandwidth, basic management and reporting. For this reason, I really like what CDN providers such as BT have done with their BT Mosaic service which allows their customers to manage and distribute the content transported over BT’s network. It is those types of services which will create competitive advantage in the CDN marketplace. As for competitors that are simply “pipes” providers? I believe the next round of consolidation is on the way for those players in a commodity business. The revenues do not support “infrastructure only” models particularly when the experts of the network, the telecom providers, are quickly ramping up operations. What are your thoughts?

August 25, 2008

The promise of mobile advertising

The ability to directly target hundreds of millions or even billions of pre-qualified potential customers with specific messaging is an advertiser’s dream. With the mobile phone being a highly individualized device that is typically not shared, this promise should be a quick reality by simply mining some existing data owned by the mobile operator. Eric Schmitt, the CEO of Google, has even recently said in an interview with CNBC that “over time we will make more money from mobile advertising” than with online ad serving.  If we take the scenario further, the promise of location based technologies will create additional value by quickly serving up contextual advertising just in time as you pass by the shop that is trying to lure you inside. Analysts have put the value of serving those ad avails for the mobile advertising market in the range of billions to hundreds of billions of dollars. At a time when mobile operators are struggling to maintain margins, is seems that they are sitting on a goldmine, right? Well, not so much.

There are a number of factors to consider, the first being the assumption that good and accessible customer data exists for each mobile device. As you move out of the western and in particular the US market, the number of prepaid customer dramatically increases which means that reliable customer data to which to match to a psychographic [definition] profile for ad targeting may not exist. Additionally, if the data does exist, it is often stored in a myriad of different customer systems owned by the mobile operator which makes a common extraction scheme more difficult. Second, due to a diversity of mobile handset operating systems and device characteristics, the rendering of the ad to ensure a common look or branding experience is challenging. Mobile rendering technologies exist, but you will still have issues between viewing an ad on a smartphone with a large screen and a mass market feature phone. Nokia has taken some steps in the right direction to address these issues with their Nokia Advertising Alliance, but again you are limited to phones served by the Nokia Media Network. This complexity is also another reason Google is launching their Android platform. Third, it is highly unlikely that mobile operators will share customer data so the launch of any pan-operator ad campaign would be limited by the customer base of a single mobile operator and need to be repeated with other mobile operators in that region. Fourth, the assumption that people are breathlessly awaiting advertising as they move around town is a bit off base. Granted, opt-in profiles can be exploited; however, we have not seen a good model in which to do so. Partially for this reason, location based services have been long on promise and short on delivery for quite some time. We also have already seen the legal issues internet service providers have faced with the NebuAd deployments where users were served advertisements based on web surfing behavior without any opt-in, so having approval of the targeted customer is vital. I feel the best opportunity here would be location linked to mobile search e.g. show we restaurants in my vicinity when I search for restaurants. Last (certainly not the final complexity to this problem), would be the maturing of the mobile operator’s role in the advertising value chain. They are just starting to develop models to exploit this opportunity and will need to become more efficient in operation for ad agencies to appropriately be able to execute advertising campaigns.

So where does that leave us? We have issues with data access for appropriate ad targeting, ad rendering across mobile devices is complex, ad serving across multiple operator’s customer bases implies replicated effort, location based targeting may not be an advertising boon and the mobile operators are still developing their own models to even efficiently operate in the advertising value chain. My colleague Bryon Morrison, the president of Ipsh! whose company executes mobile campaigns on behalf of big brands, equates some of these growing pains to the early days of the internet where the promise existed, but it took a while for monetization mature. If we start there, ad serving on the mobile internet has good short term potential since it bypasses the issues of data access and device rendering, but provides relatively small screen space and weak usage penetration. Serving ad campaigns via SMS is currently the simplest and most effective manner due to ease of management across operators and devices in addition to relatively good click thru success. The most significant new wild card in some regions has been the use of image recognition via the integrated camera on the phone which has met with significant success by again creating significant click thru and taking the complexity out of rendering mobile websites via url input by automatically navigating the user to the ad landing page once the image is captured.

To sum it all up, I am not yet completely sold on the current ad market projections since I feel too many obstacles still exist. However, I do value mobile as an advertising channel and am encouraged by the efforts of those like Bryon at Ipsh! who continue to exploit this evolving market. Additionally, I am very bullish on image recognition as a game changing technology to completely change the way we interact with print or display advertising. What are your thoughts?

August 12, 2008

Is mobile finally ready to live up to expectations?

It seems that we are constantly hearing about the promise of mobile data, applications or mobile internet. In fairness, there have been a number of factors conspiring against progress including handset capability, competing standards, user interface issues and even complexity in billing plans. However, there have been a few positive steps that will hopefully continue to push the market in the right direction.

First off, the announcement of Symbian going open source along with an alliance with Android to create a common open source platform should help coalesce the developer community in addition to removing operating system (OS) variety. Kudos to Nokia’s and Google’s foresight in regards to this issue. At the last Mobile World Congress in Barcelona, I heard the then CEO of Vodafone, Arun Sarin, call for mobile OS consolidation in the marketplace during his keynote. A fragmented marketplace does not benefit content owners who must incur increased development and testing expense to support the various OS configurations, which in turn does not benefit the mobile operator. To illustrate the point, I had a conversation with the European Mobile Head of a leading games publisher who mentioned that for each game title, his team supports a matrixed spreadsheet by phone type and by mobile operator to track development build or test certification. This consolidation will help all content owners or application developers spend more time making compelling experiences for the end customer.  

The second big achievement for mobile is the rise of the handset which is interestingly being led by Apple. While this is in contradiction to open OS, the iPhone clearly demonstrates the value of device driven experiences to encourage consumption. It has been well documented that 95% iPhone users regularly surf the mobile internet which is multiple times higher penetration than other phone models. Additionally, the Apple App store has recorded 60 million users downloading applications in the first month of being launched. The point is not to further applaud Apple, but to highlight that mobile devices can be game changers and that the “iPhone killers” are already being launched by the competition which will bring a new wave of innovation into the market place. This will only help drive usage of mobile internet services.

The last trend has been the mobile operators providing more attractive mobile data plans to remove the complexity from the end user. Most consumers struggle to understand the number of bytes required for a download which leads to confusion or a surprise when the bills come due. In the US at least, the major operators have all announced new plan options from Sprint’s “Simply Everything” to similar options from ATT or Verizon that promote mobile data usage by enabling experimentation, and hopefully adoption as well, by the end user who would not be constrained by download limits.

Results announced by Chetan Sharma Consulting for the wireless mobile data market have been very positive. In the last quarter, data related average revenue per user grew $.50 to help offset declining voice revenues. That put Verizon and ATT at $2.6B and $2.5B in data services revenues respectively. The interesting caveat to those numbers is that non-messaging revenues accounted for 50-60% of those totals which implies a strong uptake of mobile content or internet services. Actions by the operators, platform providers and handset manufacturers seems to be finally in alignment which should only benefit the end customers and allow mobile services to reach its market potential. What are your thoughts?

August 5, 2008

Content is King…. for whom?

Particularly in the IPTV space, many articles can be found regarding “content as king” with the implication that compelling content will drive viewership, assuming all other things equal such as quality of service, etc. A recent report from Analysys Mason regarding multi-play services (this was the Triple Play of phone, broadband and video/IPTV with mobile not included in the particular analysis) in the Western European market found a “lack of compelling TV content from telcos” and “difficulties in transferring telco brand attributes to the TV content market” as barriers to Telco TV penetration. I definitely agree with the assessment as Telecoms cannot have an inferior offering to current cable incumbents. The issue becomes, at what point does content remain a differentiator and at what price is that content still worth purchasing? There have been numerous US-based IPTV providers announcing expansions of VOD libraries or increased HD offerings just as European IPTV providers have announced rights to sports such as soccer. At some point, these triple play offerings start to look very similar to the end customer which essentially makes a premium offering of video commoditized. We have already seen downward price pressures on the bundles in certain US markets were competition exists with a cable incumbent and Telecom IPTV entrant. This further skews an already difficult business case for IPTV while hampering the ability to pay additional content premiums.

In my opinion, content is part of the “table stakes” offering. Creating compelling experiences that span multiple channels such as broadband, video and mobile will be a true differentiator. This is one of the reasons that we at Infosys have been investing in research projects for personal virtual libraries, products to easily port web content to video or mobile and enabling secure handoffs between network access modes. This involves getting closer to the connected home to enable easy transfer of content between those consumption mediums so current silos of content become transparent to the customer. It is taking the taking the talk of “anytime, anywhere” content and making it a simple reality or compelling experience for the end customer. One very good and simple example is the deployment of multi-room Digital Video Recorders. This is not cross-channel, but it is cross-location in the house and does not tie the user to a particular TV.  It is a great experience for the customer. The winners in the Triple Play race will build more experiences like this to differentiate their offering while using content to establish market parity.

July 29, 2008

Digital Media Divide?

I just finished reading a whitepaper regarding a digital media divide which was base around a struggle between content owners (e.g. HBO) and user generated content (UGC). The premise was the disruption created by UGC as being a threat to the content owners, essentially a competition for consumer timeshare and wallet. While I agree that there is a limit to the amount of content that can be consumed, I don’t see the divide of content owners vs UGC as the larger issue since I feel that consumers will always value good, original content. I believe the bigger issue is sharing and downward pressure on the price of mobile or web content. For example in the U.S., the price of a song is no more than Apple’s iTunes marketplace of $.99 due to their wide consumer base. Other services are moving closer to “all you can eat” with a subscription, such as Nokia’s Comes with Music, which is even less expensive. The price of digital content is further depressed via file sharing or sites that do not enforce copywrite. However, content owners can fight back and enable communities to form around their content which incorporates UGC to increase viewer loyalty and the value of their content. Potentially, concert and merchandise interest is increased for a musical artist or advertising premiums and ratings are increased for the broadcast or web/mobile viewing of a show such as Lost or Sopranos. In these instances, UGC can be harnessed to become an enabler, not a threat. It is a matter of changing business models to find all available revenue streams when the primary revenue stream is under pricing pressure.

Am I missing something in regards to this digital media divide? Maybe UGC hurts shows with very weak rating by providing another outlet for consumer attention? Are content owners simply as the mercy of the web 2.0? I would be interested in your opinions on the subject.

 

July 23, 2008

Social Networking remains hot, but how do we make money?

Being seemingly impervious to the current financial climate of tight money, Venture Capital continues to pour into wireless social networking startups and while others are being snapped up in a new wave of consolidation. Recent funding announcements include money for the likes of Zannel for $10M, Pelago for $15M, Kyte for $21M and Jaxtr for $10M, just to a name a few. The largest consolidation announcements came from Vodafone acquiring ZYB for $50M and Nokia acquiring Plazes for an undisclosed sum. Is this an irrational trend? I think not. These startups are adding one more component to the social networking value chain while product companies, such as Nokia, are continuing to develop their own portfolio offering in hopes of cashing in on the vast potential value that social networking represents. For example, Nielsen Company just released numbers suggesting that social networking usage on mobile only just recently passed 1.6% penetration in the US and 1.7% penetration in Europe, a number that should only exponentially grow. Additionally there will be a continuing turf war with operators, platform providers and handset manufactures trying to win the consumer to claim value.

 

The big question then becomes, “what value is there to claim?” for all of this investment. On the web, the market is already littered with point solutions and promises of ad funded models that have not delivered to expectations. Sure, there is uplift from new data plans from the operator to support social networking, but subscription revenue remains elusive while data usage then starts to rapidly increase. To use an example from a fixed line ISP, Plusnet in the UK released numbers showing that YouTube was consuming 17% of peak hour usage on their network, yet YouTube is still not even a large money maker for Google. I feel it is a great user base that has not been converted into a “consumer base”.

 

The answer is the creation of end to end thematic social networking portals for the customer. The thematic portals provide not only interaction, but context for relevant commerce, potential subscription revenue for high value content and targeted advertising since the audience is self-qualified. In my opinion, this mix of revenue streams will hold the greatest chance for success. A uniform and consistent, multi-screen experience completes the offering by making it easy for the consumer to interact via the modality that suits them best. The offering cannot be just another community that provides little marginal value.

 

 Thoughts?

 

July 10, 2008

Bringing Social Networks to the Network Provider

There have been many announcements over the last year with Communications Service Providers providing access to popular social networking sites such as MySpace, Facebook, Bebo and others. In the short run, this provides potential subscription revenue and data plan uplift to drive average revenue per user. However, I still have many concerns with this approach in that it does not create differentiation or enable one of the Service Provider’s key assets, customer information, since the social networking sites are essentially closed “black box” solutions. Orange has just announced a service to consolidate social networking sites to enable the display of “popular functions of each site side by side so they can be accessed with one click… to send messages, upload photos and check status updates without having to browse individual URLs or log into separate sites” which I feel is a terrific step forward. This not only creates differentiation, but also a new customer experience to ease the issues with managing multiple social networking sites and puts the Orange brand in the front of that access portal. Essentially, this is having the original network provider manage these new networks in an efficient manner.

While the efforts mentioned above are interesting, I feel they still fall short due to the fact that the value of the social network, the information on member interactions or social graph, is still hidden from the Service Provider. The information is not combined with the vast amount of customer information already resident within the Service Provider’s own databases. Gaining access to that social graph would provide insights to key influencers and support rich campaign targeting, particularly when combined with data from the mobile web or IPTV platforms. This is one of the reasons Infosys has created a white-label offering for Service Providers to launch their own social networking platforms that would be integrated into their own customer information systems and assets, in addition to providing lifestyle themes such as sports, to provide purpose to those community interactions. It is my opinion that this model will create the most value to the service provider due to the rich customer information generated, the creation of new commerce and advertising opportunities, and the establishment of a hub to promote other value added services. What are your thoughts on this approach? I welcome the discussion.

July 1, 2008

Future of Mobile Operators

Being a pure play mobile operator in western markets seems to be getting harder each day. They already have to deal with considerable market penetration which impacts future growth, but now a few more pieces of news will further complicate matters. First, a new study by Multimedia Intelligence noted the teen market, a growth segment and consumer of data services, is nearing saturation in the US. Considering this is not a multiple handset customer segment, this is not good news for the operators. Second, Tariff Consultancy has a new report detailing the worldwide trend for unlimited bundles for voice and texts. These unlimited plans simply beg for cost undercutting and further put pressure on data services to make up the revenue. My last point has more implication for European operators where the EU regulator wants international roaming charges greatly reduced, currently a good revenue stream for the mobile operators. Saturated markets, supersized bundles and cheap roaming, not a good state of affairs.

All is not lost however, the forward looking operators are already tapping into emerging markets in the east (Vodafone), using new handsets to drive demand (ATT iPhone), consolidating competition (Verizon/Alltel), bundling landline (T-Mobile) or simply looking to drive new data services revenues with a portfolio approach. Pressure on the mobile operators is nothing new, what is the correct strategy? I welcome your comments.

January 3, 2008

The Evolution of Web Apps & Human Interaction

I was motivated to write this blog in thinking about how as we increasingly accept the internet and online applications, our interactions will evolve in two ways.  Firstly, applications will emerge to address the unexpressed, hidden needs of users.  Secondly, human behaviour in some societies and cultures will evolve so that technology access becomes one of those basic needs.
 
This musing was triggered by reading about Mizpee, an online guide to restrooms, complete with location-aware mobile interface, user community features and integrated advertising.    The first reaction to this concept is one of mild amusement - it is pretty funny to think someone not only spent time to develop this solution but built a business model as well.
 
However, going beyond this, I realised that the target audience for this application was enormous.  Everybody on the move at one stage or another, needs to go.  And most people would travel an extra block for better facilities.  It's just that we never compare notes with friends or family about the experience.  This application was tapping into a true need for their target audience - apparently biker gangs are amongst the biggest users.   
 

Continue reading "The Evolution of Web Apps & Human Interaction" »

November 28, 2007

Evolution of Human Interaction on the Web

I thought I would pen  a blog is based on a little spiel I give when people ask me what the @#*$ is Web 2.0?  The focus is not on technologies and features but more on the nature of the dynamic between the human and the computer...and these days I should probably chuck in the ubiquitous "cloud".

To illustrate some of the concepts, I will be using mapping/location applications as an example.  Ever since one of our ancestors stood up straight and started looking down to a 2-d surface, maps have been a concept we all "get" and have tended to be suitable for early adopters..be they Norse Vikings, Chinese Astronomers or Generation Y looking for the nearest pizza.

The first widely adopted incarnation of the "World Wide Web" - remember when you had to use the full name? - was premised on the ability to render content to a screen and use hyperlinks to navigate between different sets of content.   The key aspect of this was that human's had to choose associations between data and navigate a path based on their interpretation.   And it was people who had to draw the connections between two sets of content to come up with useful information.

To apply this to the mapping context, a person used to do something like the following;

Go to a directory listing site;
Choose the link for the category they were looking for;
If they were lucky, search for a name  or, often the case back then, scroll through big long lists;
Select a listing, write down address.
Go to different site where images of maps were kept;
Search, or look up index, for street name to find out which map page it was on;
Select map page;
Use the map coordinates to find the street on the image and then work and, if they were lucky, roughly where the number would be; and
If you wanted directions, link through several pages of map images trying to trace back to your place.
Wow - did we really do all that once?

The key aspects of this are that humans provided the ability to correlate information, resolve location information and persist results.  Computers and the internet merely served to store and serve content and links to content.

Some people reading this will never even have experienced that process, for them Web 2.0 style interaction is all they have known.  But what is different about Web 2.0 from this perspective of human, computer and network interaction.    I'm not going to talk about AJAX, JSON and a myriad of other technology labels - see here if you want that - or even about definitions of Web 2.0 - everyone seems to have agreed O'Reilly nailed that one. 

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September 27, 2007

Changing the Online Directory game

Infosys recognises that three of the most self-evident social trends are;

1.       Increased availability and adoption of high-speed broadband across tethered and un-tethered access technologies;
2.       Increased access to and adoption of technology to empower individual users to create, manage and distribute digital content; and
3.       Increasing sophistication and heightened expectations in relation to the Internet experience.

In response to these trends, Infosys believes Online Directories need to respond the increasing appetite of small and medium business advertisers for Immediacy, Transparency and Collaboration. 

Immediacy – Enables the advertiser to manage their content, promotions and advertising spend via self-service.  This allows immediate response to the customer behaviour or business situation.  This may include the ability for an advertiser to upload videos for immediate display or real-time campaign messages – i.e a “Happy Hour Now” label appearing in their ad from 5pm daily;

Transparency – Providers an advertiser with insight into their advertising spend efficiency, consumer behaviour and market effectiveness.  Coupled with immediacy this empowers SMB advertisers to maximize their return on advertising spend; and

Collaboration – Combines the advertiser need with Online Directory expertise and services to achieve the optimal outcome.  For example, an Online Directory may introduce a post-processing service for user-generated content to ensure a high-quality experience for end-users across all channels and devices.  This ensures satisfaction of both Advertiser and User as well as increasing revenue for the Online Directory service.

This creates an opportunity for Online Directory services to achieve the following;

  • Increased consumer satisfaction convenience, trust and lifestyle enablement;
  • Increased advertiser satisfaction through empowerment and alignment with their business needs; and
  • Incremental revenue growth through a broader range of Online Directory features and services.

For further reading and examples on this subject, Infosys recommends the following Wall Street Journal article : http://online.wsj.com/article/SB119067940363238120.html

June 26, 2007

Telco Power !

I was at the NXTComm conference (the US telco show) in Chicago last week - and the air of bullishness in the industry was inescapable. Starting with AT&T's Randall Stephenson's optimism-filled keynote driving mobility, to Verizon's celebration of customer delight, it appears the telcos are making all the right moves. Any cable operator executive at the show would have clearly felt intimidated with the strides that telcos seem to be making into video world. IPTV was everywhere on the exhibit floor - service providers, end-user device makers, enabling platforms, middleware and turnkey solution providers.

If anything struck me as odd, it was the rather weak voice that content providers had at the show. I would have thought that the telcos would be seriously courting the studios with some public displays of affection - but instead, I saw them touting more person-to-person communications (e.g. AT&T's videoshare) and personal convenience capabilities (e.g. Microsoft's 3-screen Telco 2.0 concept). In a world of converging quadruple-play, I guess differentiation beyond channel line-ups is important to highlight.

Another interesting observation at the IPTV displays was the way everyone was marketing their product using the ensemble. As a lay consumer, and based purely on what I saw at the show, I would have equated Motorola, Microsoft and AT&T as independent providers of an integrated experience ... though each came from a different perspective of how they understand me as an end-customer. The extent of collaboration required to deliver an out-of-the-world customer experience is amazing - perhaps why Cisco's John Chambers picked collaboration as the topic of his keynote. But, making collaborative structures work within the organization is one thing, making them work across organizations poses a new and interesting challenge for the largely monolithic aggregators. The iPhone release due this week will be a true stress test of such a partnership.

And I wont be surprised to see Google and Apple making a splash of their own at next years telco conference.

 

 

 

 

June 11, 2007

The Customer Knowledge Integration Initiative

Knowledge management has for long been on the business and IT agenda of most CSPs. Yet, in the pursuit of  converged customer service operations, the evidence point to the emerging area of knowledge integration which can significantly enhance an organization's ability to accomplish operational transformation.

In the current environment, customer service information resides in multiple product silos, groups and organizations making it difficult if not impossible to understand and manage the customer experience. The integration of this information relies on a combination of highly knowledgeable specialist individuals and loose SLAs between various customer service groups.

While this approach has been sufficient in the past, the increasing rapidity of new product and service launches, and the demands of converged operations are outpacing this person-dependent knowledge integration. A new kind of knowledge model which acts as the customer service blueprint for each new (or existing) service is required. This new knowledge integration model will integrate disparate operational silos of information and create an organizing force that can form the basis for converged operations.

Knowledge management was about archiving the best practices of the past.

Knowledge integration is about architecting the operations of the future.

Continue reading "The Customer Knowledge Integration Initiative" »

June 8, 2007

Customer Experience Leadership through transformed Customer Service Operations

Customer experience leadership is the next battlefield for communications service providers (CSP) considering converged services. To be successful, organizations must integrate knowledge scattered among disparate functional and operational units and deliver best-in-class customer support for converged IP-based services. CSPs must also introduce proactive and predictive capabilities for customer experience differentiation.

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Customer Experience .. not Customer Service

Deepak Swamy is Associate Vice President at Infosys Technologies, and is responsible for strategic leadership of Infosys’ business solutions for communication services providers. He is an acknowledged industry expert on the converging communications market, leads strategic consulting engagements, and is a regular speaker at industry conferences on “quadruple-play” and IMS strategies for cable MSOs and wireline and wireless CSPs.

I invited Deepak to note his experiences and thoughts on how CSPs can become leaders of customer experience by transforming their customer service operations. He recently co-authored a paper with colleagues Ankur Bhan and Mandeep Kwatra.

May 10, 2007

Ringtone Resonance

I was reading an interview with Keith Pardy, SVP for Nokia's strategic marketing, published in a recent issue of the Mc.Kinsey Quarterly. Commenting on the fast paced nature of the mobile handset market, Mr.Pardy talks about how Nokia researches consumer behavior and segments their consumer base into 12 groups - each with its unique characteristic of what they would expect from a Nokia phone. He goes on to say that at any time, Nokia deals with releasing 50 products a year worldwide, each with a lifespan of 12-24 months.

The complexity of managing such a dynamic product line in the high-tech industry can be mindboggling...the backward and forward integration with supply-chains, the preciseness and simplification of marketing campaigns and the keen balancing of development and sustenance efforts.

Imagine my surprise then, when I read this article announcing Comcast's intention to begin selling cordless phone sets with enhanced features. The cable industry has been aggressive in their market statements of late - taking on the ILECs and their plans to enter the entertainment world (See this article from the 2007 Cable Show).

CableCos and telcos are faced with this new challenge: business models that were built around the notion of long-cycle product deployments are now obsolete. If consumer preferences change at lightning pace, will they be able to achieve time-to-market for their service innovations, like Nokia does with its product engineering? A recent survey of telco executives by Amdocs emphasizes the importance of good OSS to achieve time-to-market, but I think it goes beyond that. While automation is key,  nimbleness also requires seamless and quick information exchange across departments and partners. It requires intimate understanding of consumers - built through relationships rather than products.

Given their closeness, service providers can learn a lot from device suppliers about managing rapid product deployment.

 

April 9, 2007

The Age of Incremental Innovation

It used to be that the business case for returns on investment in new products assumed a sufficient time window before the products became commoditized. However, the reality today is that products will perhaps burn out faster than the time it took to build them.

In this age of incremental innovation, customers are continually bombarded with technology and product literature from all quarters. They take instinctive calls to balance obsolescence and standards-conformance with real time benefit. The market could shift away from the provider by the time he goes from IPTV v1 to IPTV v2. Customer lock-in through subsidies and contracts will only go so far, before they are challenged by more nimble competition. Delays in innovation rollout almost certainly imply the need to completely leapfrog to the next iteration, and write-off any or all investment in the current cycle.

Why wait for a product cycle to mature before thinking of reducing costs from it to maintain profitability? Increasingly, the "China Price" is the only price. So a service provider has to learn how to build and run it cheaper from the start.

Telcos are re-evaluating their Concept-to-Market approaches, looking for ways to accelerate cycles beyond "buy-vs-build". Flexible product platforms, global talent pools and willingness of customers to participate in innovation can all be leveraged to bring products to market faster and with increased relevance.

March 22, 2007

The Myth of Market Share

If a travelling mobile-user temporarily connects to another provider's service because his own provider did not offer adequate roaming, does it count as churn ? If a customer that bought a phone+DSL bundle uses a Skype-type service to make all his long distance calls, should he be included in market share ?

Consumers have become less predictable, and people's lives have taken on the parallelism and self-directing knowledge of an IP packet navigating the network. The needs of INDIVIDUAL customers are changing faster than any older notion of a generic customer market.

For communications service providers, the best approach to enhancing their capacity to anticipate change is to become the change agent itself. Market segmentation has shifted from organizaing-around-what-you-offer to organizing-around-what-people-want. It is easy to forget that even in the age of wire-line voice, the real reason someone used the phone was not primarily because the network was available, but because they loved to hear the voice of the person at the other end of the line.

Customer Integration is the new theme - and not just left to the customer service department. Loyalty programs are evolving into product co-creation for the intimacy it provides in customer relationships. Market share is passe. Wallet share is paramount. How much of each customer's needs you service is becoming more important than how many customers you service.

March 7, 2007

Head over Heels

I attended a conference recently, that brought together broadcast studios, content providers, advertising companies, cable companies and new age video distributors (ie. telecom service providers.) It made for some very interesting conversation:

It appears to me that the media & content industry is showing the first signs of a collapsing chain. Take for instance what the iTunes store is doing to music - by putting the act of compiling CDs into the hands of end consumers. For a recording artist, this has greatly increased the risk of revenue loss on albums - for now, every single needs to be a hit song. Of course, there is a contrary viewpoint to this - that something like iTunes also vastly increases the "long tail" for niche segment songs etc. Similarly, mySpace and youTube are eliminating the "middle-parties" by collapsing the video content publishing chain. With the rise of TiVo and DVRs, advertisers are embedding their products into the actual content of TV shows. Sporting franchises are embracing the term "triple-play" in a whole new context.

Is the once linear chain of customer value delivery fast becoming a rush of players tripping over each other in an effort to directly interact with the end customer? Look at what's happening - "Intel Inside" is on the outside. Motorola markets its RAZR features directly to the end consumer so they demand it from their service providers. The Sony Store sells WLAN from Cingular.

Everyone is marketing his product using the ensemble. And any single entity's unilateral control over its marketplace has weakened considerably.

Consumers' inboxes are flooded - urging them to think out of the box.

March 2, 2007

No Time for a Dress Rehearsal

Changes in services and demographics have significantly redefined the communications industry’s economic pie, and the players that contend for a slice of it. Traditional telcos, Cable TV providers, Internet portals and mobile service providers are obvious contenders. But already, city municipalities, power utilities and Hollywood studios are providing alternate access ramps to the unified communications-entertainment highway.  

Everyone’s vying for that sweet spot in the living room, bringing their own consumer interests to the party.

Competing in this new world requires its players to reevaluate their business premises - from one that required deep pockets, exclusive access to technology and its controlled deployment to consumers – to one that is based on inter mingled eco systems and an ever-increasing adaptability to fast changing consumer preferences. To put it simply, competitiveness will come from the ability to lead in short iterations, and to be able to change as fast as the external environment. And to take nothing for granted.

Was it Charles Darwin who said, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change”.

February 28, 2007

The Incumbent Challenge

The Flat World forces have caused huge entry, sustenance and growth barriers in this industry to drop, leading to a plethora of competitive elements and consumer alternatives for "staying connected".

Internet Protocol (IP) technologies are flattening the core of the industry’s model. The new technology platforms are really leveling the playing field for deploying cheaper innovation faster, and by smaller players.

At the same time, consumer awareness is flattening the consumption edges of the industry. For instance, haven't you, the consumer, become more aware of what's behind the firewalls? More demanding of the converged services you desire? Don't you crave a service provider that can change as fast as you?

I think these trends have fueled the accelerated deployment of new innovation and the convergence of hitherto distinct businesses - communications, broadband, broadcast, entertainment and technology.

And all of this did not happen overnight! Rather, over the last decade or so, they have happened in iterations as the industry went through a roller coaster. Just when the telcos replaced dial-up with faster ADSL, cable companies entered the voice and internet access markets. Even as telcos close nationwide content deals for their new video services, the nature of broadcast television is shifting to more personal and community content on TiVos and youTube. The turns are getting faster, steeper and closer to each other, causing even more disruption to known orders.

It's forcing the incumbents to behave like challengers.

Continue reading "The Incumbent Challenge" »

February 21, 2007

Circles of Evolution

“What?” I hear you say, “Another blog for the communications industry? “ Well, like most others, we hope to make a point here and then take it this way and that to create a few lines, and then maybe go around in circles before we finally erase the board and start again with renewed vigor…

Sounds a bit like the telecommunications industry that emerged on 1 January 2007, doesn’t it? Except maybe, for the fact that the marketplace seems to have undergone a transformation like no other while Ma-Bell redrew herself.

Always something new to offer.  

I was browsing the web sites of the large telecoms of the world and couldn’t help but notice how nearly 90% of them have some kind of a circle or oval shape in their logos – perhaps suggesting a global connectedness and a multi-dimensional character. Then again, maybe it’s just a reflection of a feeling of completeness. Known boundaries. Stable revolutions. Symmetric outcomes. Complex forces made to appear simple.

Fact is that the numerous technologies, media, content, players and consumers that make up our communications planetary system have begun to exert a new set of forces. Some will use the energy to catapult into new orbits. Others with thin crusts will be exposed and relegated to the status of Pluto.

Join me as we debate, discuss and demystify this emerging landscape. I hope to bring together the perspectives of eager consumers, industry experts, technology gurus and market commentators.